IBC Liquidation Process Regulations, 2016

The Code Insolvency and Bankruptcy Code, 2016 (IBC) Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 IBBI (Liquidation […]

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Insolvency and Bankruptcy Code, 2016 (IBC)

Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

IBBI (Liquidation Process) Regulations, 2016

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Chapter I-Preliminary

Regulation-1 Short title and commencement
Regulation-2 Definitions
Regulation-2A Contributions to liquidation costs
Regulation-2B Compromise or arrangement

Chapter II-Appointment and Remuneration of Liquidator

Regulation-3 Eligibility for appointment as liquidator
Regulation-4 Liquidator’s fee

Chapter III-Powers and Functions of Liquidator

Regulation-5 Reporting
Regulation-6 Registers and books of account
Regulation-7 Appointment of professionals
Regulation-8 Consultation with stakeholders
Regulation-9 Personnel to extend cooperation to liquidator
Regulation-10 Disclaimer of onerous property
Regulation-11 Extortionate credit transactions

Chapter IV-General

Regulation-12 Public announcement by liquidator
Regulation-12A Process email ID
Regulation-13 Preliminary report
Regulation-14 Early dissolution
Regulation-15 Progress reports

Chapter V-Claims

Regulation-16 Submission of claim
Regulation-17 Claims by operational creditors
Regulation-18 Claims by financial creditors
Regulation-19 Claims by workmen and employees
Regulation-20 Claims by other stakeholders
Regulation-21 Proving security interest
Regulation-21A Presumption of security interest
Regulation-22 Production of bills of exchange and promissory notes
Regulation-23 Substantiation of claims
Regulation-24 Cost of proof
Regulation-25 Determination of quantum of claim
Regulation-26 Debt in foreign currency
Regulation-27 Periodical payments
Regulation-28 Debt payable at future time
Regulation-29 Mutual credits and set-off
Regulation-30 Verification of claims
Regulation-30A Transfer of debt due to creditors
Regulation-31 List of stakeholders
Regulation-31A Stakeholders’ consultation committee

Chapter VI-Realisation of Assets

Regulation-32 Sale of Assets, etc.
Regulation-32A Sale as a going concern
Regulation-32B Conduct of meetings of the consultation committee
Regulation-33 Mode of sale
Regulation-34 Asset memorandum
Regulation-35 Valuation of assets or business intended to be sold
Regulation-36 Asset sale report
Regulation-37 Realization of security interest by secured creditor
Regulation-37A Assignment of not readily realisable assets
Regulation-38 Distribution of unsold assets
Regulation-39 Recovery of monies due
Regulation-40 Liquidator to realize uncalled capital or unpaid capital contribution

Chapter VII-Proceeds of Liquidation and Distribution of Proceeds

Regulation-41 All money to be paid in to bank account
Regulation-42 Distribution
Regulation-43 Return of money
Regulation-44 Completion of liquidation
Regulation-44A Treatment of avoidance of transaction
Regulation-45 Final report prior to dissolution
Regulation-45A Preservation of records
Regulation-46 Corporate Liquidation Account
Regulation-46A Exclusion of certain assets from the liquidation estate
Regulation-47 Model time-line for liquidation process
Regulation-47A Exclusion of period of lockdown

Schedules & Forms

Regulation-Schedule-I Mode of Sale
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